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Lower-cost version of Apple iPhone has been expected nearly since the launch of the original device back in mid-2007, but the company has never confirmed so-called “nano” version of the iPhone. While some analysts expected the “iPhone nano” to arrive by Christmas ’08, others now expect the product to reach the market in Q2 2009.

“Incremental checks into the Apple supply chain have revealed the prospect that a lower-cost version of the iPhone is coming possibly in mid Q2,” analyst Craig Berger from Friedman, Billings, Ramsey said in a note for clients, reports Barron’s web-site.

There are expectations that Apple will officially tout the iPhone nano model at Macworld trade-show in January. However, if the availability is planned for Q2, then the company may have no reasons to talk about the device months before the release. At least, Apple is not known for pre-announcing its products.

It is logical that amid global economic slump consumers will cut their spending and the demand will shift to more affordable products. Apple does have lineups of iPod digital media players and personal computers that include both inexpensive and premium products, but the iPhone exists only in one version that is relatively expensive. As a result, a cheaper version of the product is definitely needed on the market.

Apple did not comment on the news-story.

Tags: Apple, iPhone

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